1. 5g industry terminals have entered the replication acceleration stage, and tob applications have been continuously improved
1) the construction of 5g network infrastructure continues to accelerate, the cumulative number of base stations deployed in China exceeds 70% of the world, and the basic soil construction is gradually improved;
2) 5g industry terminal is in the early stage of market growth, and various parties work together to cultivate industrial applications. Industrial development has entered the stage of accelerated replication.
We believe that at the key node of 5g network from infrastructure construction to application expansion, driven by the joint efforts of policy, industry and market, 5g2b market is expected to accelerate the evolution from industrial incubation stage to industrial replication stage, the demand for enterprise equipment connection has increased significantly, and the demand for digital upgrading of enterprises in multiple industries has driven the demand for 5g network construction and network transformation, Finally, accelerate the industrial explosion from point to area.
2. Sorting out investment opportunities
In the critical stage of 5g industry application from incubation to replication, the promotion of industry technology application must first be promoted by two types of products at the technology upgrading port: one is the standardized product market with market scale and volume basis, and the other is the mature products with high gross profit. In addition, with the development of application promotion and the combination of some emerging technologies, many innovative low market areas are also expected to usher in the next round of high-speed growth.
We believe that based on the above products, the application direction of the industry can be reduced to three types of tracks, including high-quality, mature and potential tracks, which are
High quality track: in the field of public safety (smart security, smart patrol, smart law enforcement, smart buildings, etc.), relevant listed companies include: Hytera Communications Corporation Limited(002583) , Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Zhejiang Dahua Technology Co.Ltd(002236) ;
Mature track: smart Media & HD live broadcasting, transportation and logistics, smart energy, etc. relevant listed companies include: Beijing Jetsen Technology Co.Ltd(300182) , Hangzhou Arcvideo Technology Co.Ltd(688039) , Tcl Technology Group Corporation(000100) , Boe Technology Group Co.Ltd(000725) , Zhejiang Damon Technology Co.Ltd(688360) , Eternal Asia Supply Chain Management Ltd(002183) , Antong Holdings Co.Ltd(600179) , Zhejiang Canaan Technology Limited(300412) ;
Potential track: Industrial Internet, UAV field, intelligent medical treatment, etc. relevant listed companies include: Shugen Internet ( Sany Heavy Industry Co.Ltd(600031) ), Foxconn Industrial Internet Co.Ltd(601138) , Shanghai Baosight Software Co.Ltd(600845) , aerospace cloud network, Nancal Technology Co.Ltd(603859) , torch technology, etc.
5g application is expected to blossom at multiple points in the above industrial tracks, and realize the final outcome of industrial application from point to area.
3. Viewpoint of communication sector
1) in 2022, we will pay close attention to the main context of digital economy, take data flow as the clue, and explore new technological innovation opportunities such as intelligent sensing, silicon optical transmission and storage to cloud native driven by new applications such as metauniverse, industrial Internet and intelligent driving. From the bottom, we continue to focus on high growth sectors such as it main equipment ( Unisplendour Corporation Limited(000938) , Zte Corporation(000063) ), network security, communication + new energy ( Longshine Technology Group Co.Ltd(300682) ), Internet of vehicles applications, military communications and satellite Internet ( Guangzhou Haige Communications Group Incorporated Company(002465) , Shenzhen H&T Intelligent Control Co.Ltd(002402) ), Internet of things ( Fibocom Wireless Inc(300638) ), as well as emerging tracks related to and derived from cloud ecology, Including IDC ( Beijing Sinnet Technology Co.Ltd(300383) , Guangdong Aofei Data Technology Co.Ltd(300738) , Black Peony (Group) Co.Ltd(600510) ; relevant beneficial targets Capitalonline Date Service Co.Ltd(300846) ), edge computing and cloud native (relevant beneficial targets Qingcloud Technologies Corp(688316) ), metauniverse, etc. ( Hangzhou Anysoft Information Technology Co.Ltd(300571) ).
2) recommend undervalued stocks this week: Unisplendour Corporation Limited(000938) , Willfar Information Technology Co.Ltd(688100) , Black Peony (Group) Co.Ltd(600510) (acquisition of Aite energy layout thermal energy management business), Tcl Technology Group Corporation(000100) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Beijing Sinnet Technology Co.Ltd(300383) , Goldcard Smart Group Co.Ltd(300349) , Aisino Corporation(600271) , Hangzhou Anysoft Information Technology Co.Ltd(300571) , Zte Corporation(000063) and other companies.
4. Risk warning
5g network construction is less than expected; The development of private network applications in related industries is less than expected.
